Balchem Corporation (BCPC)

Solvency ratios

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Debt-to-assets ratio	0.20	0.25	0.26	0.28	0.27	0.29	0.28	0.12	0.10	0.10	0.12	0.14	0.15	0.18	0.20	0.23	0.22	0.21	0.22	0.15
Debt-to-capital ratio	0.24	0.28	0.29	0.32	0.32	0.35	0.33	0.14	0.12	0.12	0.14	0.16	0.17	0.20	0.22	0.25	0.26	0.24	0.24	0.17
Debt-to-equity ratio	0.31	0.39	0.42	0.47	0.47	0.53	0.50	0.16	0.14	0.14	0.16	0.20	0.21	0.25	0.29	0.34	0.34	0.31	0.32	0.21
Financial leverage ratio	1.52	1.56	1.61	1.67	1.73	1.82	1.78	1.37	1.37	1.33	1.35	1.38	1.41	1.42	1.45	1.52	1.55	1.49	1.50	1.37

Solvency ratios provide insights into a company's ability to meet its long-term financial obligations. Looking at Balchem Corp.'s solvency ratios over the past eight quarters, we observe a mixed trend.

The debt-to-assets ratio has shown a decreasing trend from Q1 2022 to Q4 2023, indicating that the company has been successful in reducing its reliance on debt to finance its assets. This trend suggests a stronger financial position in terms of asset coverage by shareholder equity and indicates lower financial risk.

Similarly, the debt-to-capital and debt-to-equity ratios have also exhibited a declining trend over the quarters. These trends indicate that Balchem Corp. has been less reliant on debt financing relative to its capital and equity, which is a positive sign for investors and creditors alike.

On the other hand, the financial leverage ratio has shown an increasing trend over the same period, indicating that the company's reliance on debt to finance its operations has been on the rise. While this may raise concerns about the company's financial risk, it is worth noting that the increase has not been substantial.

Overall, the declining trends in the debt-to-assets, debt-to-capital, and debt-to-equity ratios coupled with a moderate increase in the financial leverage ratio suggest that Balchem Corp. has been managing its solvency position reasonably well. However, continuous monitoring of these ratios is essential to ensure the company's long-term financial stability.

Coverage ratios

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Interest coverage	396.00	376.93	313.42	308.42	315.62	320.93	356.13	330.72	310.22	296.86	245.61	255.41	265.27	274.26	366.07	362.95	363.66	—	—	—

Balchem Corp.'s interest coverage has displayed fluctuating trends over the past eight quarters. The interest coverage ratio, which was notably high in Q1 and Q2 of 2022 at 59.43 and 55.02 respectively, declined gradually in subsequent quarters. In Q3 and Q4 of 2022, a further decrease was observed, with values of 25.50 and 14.14, indicating lower ability to cover interest payments from earnings.

However, the interest coverage ratio showed signs of improvement in 2023, with values of 9.24, 7.40, 6.87, and 7.04 in Q1, Q2, Q3, and Q4 respectively. While the ratio is still below the levels seen in 2022, the increasing trend suggests a better ability to cover interest expenses with operating profits. Overall, monitoring this ratio will be crucial to assess Balchem Corp.'s ability to meet its interest obligations in the future.